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Chicago, IL – May 12, 2025 – Zacks Equity Research shares Upwork UPWK as the Bull of the Day and PACCAR PCAR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Uber Technologies UBER, Lyft LYFT and DoorDash DASH.
Here is a synopsis of all five stocks.
Upwork is a Zack Rank #1 (Strong Buy) that operates a global online marketplace that connects businesses with independent professionals and agencies for a wide range of freelance services.
The stock sold off during the last few months, but is now trading near 2025 highs after a solid earnings report. The bulls are looking for a breakout, so let's dig into the name and see why buyers are coming in.
Upwork’s platform facilitates remote collaboration across various fields, including writing, graphic design, web development, marketing, and more.
Founded in 2013 and originally known as Elance-oDesk, the company is headquartered in Palo Alto and employs 600 full-time staff.
Upwork is valued at $2.1 billion and has a Forward PE of 14. The stock has Zacks Style Scores of “C” in Growth and Momentum. However, UPWK has an “D” score in Value.
Upwork delivered a strong Q1 2025 performance, beating expectations on both the top and bottom lines. The company reported revenue of $192.7 million, up from $190.9 million year-over-year, and adjusted earnings of $0.27 per share, compared to $0.22 in Q1 2024. This beat expectations by 36%.
Adjusted EBITDA surged to a record $56 million, representing a 29% margin, up significantly from $33.3 million and a 17% margin the previous year. Free cash flow came in at $30.8 million, and non-GAAP gross margin reached 78.3%.
However, gross services volume (GSV) declined 2.1% to $987 million, and active clients fell 7% to 812,000, reflecting some ongoing top-of-funnel macroeconomic pressures. Despite this, CEO Hayden Brown emphasized that strategic investments in AI are already driving customer engagement and productivity, laying the groundwork for long-term market share gains.
Upwork guided Q2 revenue between $184–189 million and adjusted EBITDA between $45–49 million, with margins expected to normalize from Q1's peak. For the full year, the company reaffirmed its revenue outlook of $740–760 million but raised its adjusted EBITDA guidance to $190–200 million (up from $180–190 million) and EPS to $1.14–1.18.
Upwork Inc. price-eps-surprise | Upwork Inc. Quote
Not much analyst coverage on this name yet, but estimates have ticked higher since the earnings report.
For the current quarter, estimates have gone from $0.25 to $0.26 over the last 7 days. For next quarter, we see similar movement, going from $0.26 to $0.27.
For the current year, estimates have gone from $1.04 to $1.14, a jump of 10%.
The longer-term trends look good, with estimates for next year going from $1.19 to $1.33 over the last 90 days. This is an increase of 12%.
Analysts were not excited enough to raise price targets. Needham reiterated their Buy rating, but held their $19 target. RBC Capital left their $18 target and Sector Perform.
Last October the stock broke out from the $10 level after a positive earnings report. From there, the stock traded sideways and then fell to $11 during the April sell off. The stock has made its way back to the $16 area and looks poised to go higher.
The bulls have broken Fibonacci resistance and can now target the 161.8% Fib extension at $22. However, this market is volatile, so let’s look at some possible entry points.
Here are some support levels:
21-day: $13.75
50-day: $13.60
200-day: $13.50
Fibonacci Support levels reside at $15 (50%) and $14.70(61.8%).
If the stock pulls back, the Fibonacci levels would give solid entry points with investors able to lean on those moving averages.
Upwork is showing renewed strength after a period of weakness, supported by improving fundamentals, a bullish earnings surprise, and increasing investor interest.
The company’s strategic pivot toward AI integration appears to be gaining traction, driving both customer engagement and long-term profitability. With upward earnings estimate revisions, improving margins, and bullish technical momentum, UPWK offers an intriguing setup for growth-oriented investors.
While valuation and macro headwinds remain, the current chart structure and strengthening outlook suggest the stock could have meaningful upside from current levels.
PACCAR is a Zacks Rank #5 (Strong Sell) that designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks.
The company has substantial manufacturing exposure to light/medium trucks and with the industry struggling the stock has been trending lower.
Moreover, PCAR just reported an earnings miss and analysts are cutting their earnings estimates.
Headquartered in Bellevue, Washington, PACCAR operates through three principal segments: Truck, Parts, and Financial Services.
The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. The Parts segment provides aftermarket support, while the Financial Services segment offers financing and leasing options for customers and dealers.
PCAR is valued at $48 billion and has a Forward PE of 15. The stock holds Zacks Style Scores of “B” in Value and Growth, but “D” in Momentum.
PACCAR reported mixed Q4 results, with earnings missing expectations by 7%, while revenue exceeded estimates.
Truck deliveries declined to 43,900 from 51,100 a year earlier, but the company maintained a stable outlook for 2025, reaffirming its forecast for U.S. and Canadian Class 8 truck retail sales at 250,000 to 280,000 units.
While PACCAR continues to dominate the North American vocational truck market with a 30.7% share through Kenworth and Peterbilt, the company acknowledged a slowdown in overall truckload demand.
Dealer inventories remain healthy at 2.9 months, and the less-than-truckload market is showing relative strength. Management anticipates that infrastructure spending will sustain demand in key segments, but the outlook suggests 2025 could largely mirror 2024 with growth skewed toward the back half of the year.
Since reporting earnings PCAR has seen analysts cut estimates aggressively.
Over the last 30 days, numbers for the current quarter have gone from $1.82 to $1.39. This is a drop of 23% and for the current quarter, numbers have dropped 21%, going from $1.92 to $1.51.
Looking at the current year, estimates have also declined 21% over the last 60 days, down from $7.57 to $5.97.
This trend looks to continue as next year’s estimates have been slashed 24%, falling from $9.16 to $6.96
The stock is hovering around 2025 lows, hanging just above the $90 level. The bulls recently reclaimed the 21-day moving average after the stock sold off on earnings. This is short term bullish, but due to the headwinds stated above, investors should take caution if the stock falls under the May low at $88.
Resistance above is at the 50-day moving average at $95.30 and the 200-day MA at $100.70. Until the earnings story turns around, these levels should be seen as opportunities to take profits.
If the stocks start to trend lower, the $70 level could come into okay. This was a resistance area back in 2023 and would likely find support.
PACCAR faces mounting pressure as industry headwinds, declining truck deliveries, and falling earnings estimates weigh on the stock. While the company’s strong market share and infrastructure-driven demand offer some long-term stability, the near-term outlook remains challenged. With analysts slashing estimates and the stock trading near key support levels, investors may want to stay cautious until there’s clear evidence of a turnaround in both fundamentals and sentiment.
On May 7, San Francisco, CA-basedUber Technologies, which provides ride-hailing, food delivery and freight (leasing vehicles to third parties) services through its Mobility, Delivery, and Freight segments, respectively, released mixed first-quarter 2025 results. While earnings per share surpassed the Zacks Consensus Estimate, revenues fell short of the same.
The revenue miss in the March quarter naturally disappointed investors, resulting in the stock declining 4.3% since the earnings release. The market’s reaction may be perceived as a golden buying opportunity. Let’s explore.
Uber’s first-quarter 2025 earnings per share of 83 cents outpaced the Zacks Consensus Estimate of 51 cents. In the year-ago quarter, the ride-hailing company had incurred a loss of 32 cents per share.
Total revenues of $11.5 billion fell short of the Zacks Consensus Estimate of $11.6 billion. The top line jumped 14% year over year on a reported basis and 17% on a constant currency basis. With economic activities returning to normal levels in the post-pandemic scenario, people are traveling to work and other places as before. As a result, UBER’s Mobility business has been seeing buoyant demand, with segmental revenues increasing 18% in the March quarter on a constant currency basis.
With customer traffic picking up, gross bookings from the unit were highly impressive, aiding first-quarter results. Gross bookings from the Mobility segment in the March quarter increased 20% year over year on a constant currency basis to $21.2 billion.
Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 22% year over year on a constant currency basis. Gross bookings from the Delivery segment in the March quarter rose 18% year over year on a constant currency basis to $20.4 billion. Trips soared 18% to 3 billion. Monthly Active Platform Consumers increased 14% year over year to 170 million. The company reported free cash flow of $2.25 billion in the quarter, highlighting its financial bliss.
The earnings beat by Uber in the March quarter enabled it to maintain its excellent earnings surprise track record. Uber has outpaced the Zacks Consensus Estimate in each of the past four quarters, the average beat being 212.3%.
Uber Technologies price-eps-surprise | Uber Technologies Quote
In the June quarter, gross bookings are anticipated to be in the $45.75-$47.25 billion range, representing growth on a constant currency basis in the 16-20% band from second-quarter 2024 actuals.
The guidance includes an estimated 1.5 percentage point impact of currency headwind (including a roughly 3 percentage point currency headwind to Mobility). Our estimate for second-quarter 2025 gross bookings is currently pegged at $45.7 billion.
In the second quarter, adjusted EBITDA is estimated to be in the range of $2.02 billion to $2.12 billion, suggesting year-over-year growth of 29% to 35%.
Uber has navigated the recent tariff-induced stock market volatility well, registering a 36.5% year-to-date gain, while the ZacksInternet-Services industry is down in double digits. Uber’s main competitor, Lyft, has gained merely 0.8% in the same timeframe. Another industry player, DoorDash, has performed better than Lyft but underperformed Uber year to date, gaining 9.1%.
From a valuation perspective, Uber is trading relatively expensive. Going by its price/earnings ratio, the company is trading at a forward earnings multiple of 28.97, above the industry’s 16.39. The company has a Value Score of D. Meanwhile, Lyft looks too cheap at a forward earnings multiple of 11.41, whereas DoorDash’s P/E sits at 69.48. Lyft and DoorDash have a Value Score of B and F, respectively.
Despite the market's reaction to Uber’s second-quarter 2025 revenue miss and headwinds like high debt, Uber's fundamentals remain strong. Even though Uber’s primary business is ridesharing, it has diversified into food delivery and freight over time. Diversification is imperative for big companies to reduce risks, and UBER has excelled in this area. The company has engaged in numerous acquisitions, geographic and product diversifications, and innovations. Uber’s endeavors to expand into international markets are commendable and provide it with the benefits of geographical diversification.
Uber aims to gain a stronghold in the highly promising robotaxi market through strategic partnerships. The above association is a step on that front. By adopting this approach, Uber has avoided the massive R&D costs associated with developing autonomous systems independently.
Uber’s scale, targeted market expansions and diversification strategies position it well for long-term growth, supporting the idea that its high valuation may be justified. Given its solid long-term potential (UBER’s long-term earnings [three to five years] growth rate is 36%, way ahead of its industry’s 16.7%), retaining this Zacks Rank #3 (Hold) stock appears prudent. Meanwhile, new investors might consider waiting for a more attractive entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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